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CRIME

Sweden’s first case against an overpriced rental goes to court – two years after law change

For the first time, a Swedish landlord has been prosecuted for overcharging their tenant and subletting their apartment without permission from their own landlord.

Sweden's first case against an overpriced rental goes to court – two years after law change
The tenant was charged around 3,000 kronor more each month than the price allowed by law. Photo: Henrik Montgomery/TT

Sweden tightened its rules on subletting in October 2019, introducing a maximum two-year jail sentence for people found guilty of overcharging their tenants.

The landlord who is first to be prosecuted under the new laws is a man in his 40s, according to Hem & Hyra which was first to report on the case.

He was paying 6,527 kronor in monthly rent for the apartment in Hässelby, northern Stockholm, and the law states that a secondhand tenant or subletter should only be charged around 10-15 percent more than this (to cover bills and furniture). Instead, he allegedly charged at least two tenants 10,500 kronor.

The rules for people who own their apartment and sublet it are slightly different, since the base amount can be calculated based on what it would cost to get a new mortgage on the apartment, which means that subletting from someone who owns their apartment is often more expensive than subletting from someone who rents.

The case in Hässelby came to light after neighbours informed the property owner last winter that there were a lot of non-residents coming to and from the apartment. 

Then, the company that owns the apartment asked one neighbour to keep a log of who was living in the apartment and when moving companies were seen, which they then provided to police. Additional evidence included the advert for the sublet on classifieds site Blocket as well as text messages between the subletter and his tenants. The man denied the allegations when questioned by police.

As well as overcharging for the monthly rent, the charges allege that the landlord had not requested permission to sublet from the housing company, which is compulsory in Sweden. Secondhand tenants should always ask to see proof of this permission being granted, as well as a breakdown of the costs, to guard against illegal sublets.

The punishment for illegal sublets can include fines or even a jail sentence for the landlord, of up to two years.

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BUSINESS

Ericsson releases details of internal probe into suspected Isis bribes

Ericsson employees may have bribed Islamic State group members to get road transports through Iraq, the Swedish telecoms giant said.

Ericsson releases details of internal probe into suspected Isis bribes

“What we see is that people have paid for road transport through areas controlled by terrorist organisations, including Isis,” Börje Ekholm told Swedish financial daily Dagens Industri, about the extremist group that’s also often referred to as the Islamic State or IS.

“With the means we have, we haven’t been able to determine the final recipients of these payments,” he added.

Ericsson’s share price tumbled by seven percent in opening trading on the Stockholm stock exchange after the news.

Ekholm’s comments came hours after the company released a statement late Tuesday admitting “serious breaches of compliance rules and the company’s code of business ethics” regarding Ericsson employees, vendors and suppliers in Iraq between 2011 and 2019.

It said an internal investigation conducted in 2019 had revealed “evidence of corruption-related misconduct”.

It included “making a monetary donation without a clear beneficiary; paying a supplier for work without a defined scope and documentation; using suppliers to make cash payments; funding inappropriate travel and expenses; and improper use of sales agents and consultants”.

In addition, it found violations of Ericsson’s internal financial controls, conflicts of interest, non-compliance with tax laws and obstruction of the investigation.

Ericsson said payment schemes and cash transactions that “potentially created the risk of money laundering were also identified” but “the investigation could not identify that any Ericsson employee was directly involved in financing terrorist organisations”.

Several employees left the company as a result of the investigation, “and multiple other disciplinary and other remedial actions were taken”, Ericsson said in the statement.

Ekholm told Dagens Industri that Ericsson had shared the conclusions of its investigation with US authorities.

The company said it had chosen to disclose details of the now two-year-old investigation due to “detailed media inquiries from Swedish and international news outlets”.

Swedish public broadcaster SVT said its investigative news show Uppdrag Granskning had put questions to Ericsson, in collaboration with the International Consortium of Investigative Journalists (ICIJ).

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